“The scale of this project is staggering,” a local real estate expert commented after Meta acquired over 1,000 acres in Northeast El Paso for roughly $8.5 million, which breaks down to about $8,156 per acre. This price is exceptionally low compared to urban real estate markets, highlighting Texas' appeal for tech giants seeking expansive land at affordable rates. Meta’s ambitious plan calls for a data center campus capable of scaling up to 1 gigawatt of power, supported by a dedicated natural gas power plant.
Originally announced in 2024 with a $1.5 billion budget, the investment estimate has since surged past $10 billion. The facility will feature a 366 MW natural gas plant to deliver reliable energy, with projected costs between $473 million and $552 million for that component alone. Construction is set to break ground in October 2025, ramping up through 2026, and is expected to generate approximately 1,800 jobs during the build phase. Once operational, the campus will sustain around 100 full-time roles.
Choosing El Paso is strategic: Texas offers deregulated energy markets and comparatively cheap land, allowing for such large-scale projects to flourish. This marks Meta’s third Texas development, joining existing data centers in Fort Worth and Temple. However, the decision to rely on natural gas has stirred some opposition from local officials concerned about cost and environmental impact, reflecting broader debates on energy sourcing amid rapid AI infrastructure expansion.
The increasing investment from $1.5 billion to over $10 billion signals how swiftly the AI infrastructure race is intensifying. As hyperscalers compete for sites with access to power, water, and fiber, land values in these areas could rise significantly. This competition also puts pressure on other energy-intensive operations, such as Bitcoin mining, which may face higher electricity costs or constrained grid access in Texas. The overlap between AI data centers and crypto mining for resources is becoming a notable dynamic in the state’s energy landscape.
